Hedge funds and their managers are struggling to cope with a ‘tsunami’ of redemption requests, coinciding with poor investment liquidity. On top of this, certain funds have been impacted by the business dislocation caused by Lehman’s collapse, the ban on short selling, and a more risk averse approach by prime brokers. Legal risk permeates all of these issues. Mayer Brown’s cross-practice team of lawyers can assist funds and their managers in evaluating and reducing the relevant risks, developing proposals for investors and successfully implementing them.